Earlier this month, reports emerged that Samsung Electronics was cutting up to 30% of its overseas workforce, with Business Korea noting issues with its 2nm yield and the company’s decision to pull staff from its Taylor plant. Now, Digital Daily reports that Samsung has further delayed construction and orders for its Pyeongtaek Phase 4 (P4) facility and the second foundry plant in Taylor, Texas.

Citing semiconductor industry sources, Digital Daily revealed that Samsung recently notified key suppliers about the postponement of equipment and infrastructure orders for both facilities. While Samsung has not officially confirmed the construction timeline, insiders say both plants were originally slated to break ground in the second half of this year. The latest notifications, however, confirm delays.

Market speculation surrounding these projects has been rife. Digital Daily reported that some predict part of the P4 line, initially intended for foundry production, might be converted into memory production. Others suggest the expansion could be delayed altogether due to the downturn in memory semiconductor demand.

According to Digital Daily, the Pyeongtaek P4 line—designed as the world’s largest semiconductor production facility—was expected to handle both memory and foundry production. The facility is divided into four phases, with the first already operational. However, construction on phases 2-4, initially scheduled for this year, has been postponed, delaying related equipment and infrastructure orders as well.

Samsung’s foundry project in Taylor, Texas, is facing a similar situation. The company had planned to invest $44 billion to build two semiconductor plants and an advanced packaging R&D center. Under the CHIPS Act, Samsung was set to receive $6.4 billion in U.S. government subsidies.

Although construction on the first plant is underway after multiple delays, with completion targeted for 2026 and advanced sub-5nm processes in development, Digital Daily reported that the start of construction for the second plant, originally expected this year, has been postponed. As a result, related orders have also been delayed.

As reported by Digital Daily, a representative from Samsung Electronics stated that the company is unable to provide an official update on its production line operations, but it may adjust plant construction plans in response to fluctuations in demand.

(Photo credit: Samsung)

Driven by the massive demand for AI chips, advanced packaging is in short supply, and the development of three major advanced packaging technologies CoWoS, SoIC, and FOPLP is booming. In addition, two major billion-dollar projects in China have made recent progress, further advancing the region’s advanced packaging and testing industry.

According to estimates from TrendForce, revenue from 2.5D packaging services offered by foundries is expected to grow by over 120% annually by 2025. Although this segment will account for less than 5% of overall foundry revenue, its importance is steadily increasing.

HT-Tech and Tong Fu Advance Billion-Dollar Advanced Packaging Projects

On September 22, the second phase of the HT-Tech Nanjing Integrated Circuit Advanced Packaging and Testing Industrial Base project broke ground in the Pukou District of Nanjing.

The first phase of this project began production in July 2020, achieving a production value of 2.9 billion yuan in 2023. HT-Tech Group has decided to invest another 10 billion yuan to launch the second phase, aiming to build 200,000 square meters of factories and supporting facilities, introduce high-end production equipment, and create an internationally advanced integrated circuit packaging and testing production line. The products will be widely used in memory, RF, computing power, AI, and other fields.

In addition, two sub-projects of Tongfu’s advanced packaging base have also made progress. Construction of the Tongfu Tongda Advanced Packaging Base project has officially begun, and on the same day, the first piece of equipment for the second phase of Tongfu Tongke’s Memory project was installed.

The total investment in the Tongfu Tongda Advanced Packaging Base project is 7.5 billion yuan, covering 217 acres. The project is expected to be fully operational by April 2029, focusing on communications, memory, computing power, and other application areas, with a particular emphasis on multi-layer stacking, flip-chip, wafer-level, and panel-level packaging, all key products supported by national policy.

The second phase of the Tongfu Tongke Memory project adds 8,000 square meters of cleanroom space, and once operational, will provide 150,000 wafers per month. Additionally, 160 million yuan will be invested in equipment, primarily critical for the mass production of high-end products such as embedded FCCSP and uPOP, better meeting the domestic demand for high-end memory products in mobile phones, solid-state drives, servers, and more.

Progress in Advanced Packaging by TSMC, Amkor, and ASE

After purchasing the fourth factory of Innolux in Southern Taiwan Science Park (STSP) in mid-August, TSMC has swiftly begun construction, aiming to have the first phase of the new factory and equipment ready before the Chinese New Year in 2025. TSMC has integrated the new facility into its CoWoS production plan, striving to double total capacity by 2025.

TSMC expects CoWoS capacity to continue expanding rapidly through 2026, with an annual compound growth rate of over 50% from 2022 to 2026.

In terms of expanding CoWoS capacity, TSMC is also strengthening its cooperation with OSAT (Outsourced Semiconductor Assembly and Test). It is reported that TSMC has outsourced the critical CoW process in the front-end and the WoS process in the back-end to SPIL (a subsidiary of ASE Technology Holding) and Amkor.

At Amkor, the company has reportedly completed investments to expand the 2.5D advanced packaging capacity at its K5 factory in Songdo, Incheon, South Korea, tripling its capacity compared to the second quarter of last year.

At ASE, plans are underway for the Central Taiwan Science Park’s main plant and its second factory. Additionally, ASE’s wholly-owned subsidiary SPIL recently repurchased the Tanzi Factory. Furthermore, existing factories, such as the one in Zhongshan, are being reallocated. Once the cleanrooms are complete, equipment installation will begin, increasing capacity by at least 20%.
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(Photo credit: TSMC)

While South Korean memory giants Samsung Electronics and SK hynix saw their sales in China double in the first half of this year, the country as a whole seems to heavily rely on China for essential semiconductor raw materials as well, with silicon, germanium, gallium and indium seeing the largest increase, according to a report by the Korea Eximbank Overseas Economic Research Institute on September 24 cited by Business Korea.

Despite the efforts to diversify supply chains, the report highlights the growing reliance of South Korea on China for critical semiconductor raw materials. For instance, the importance of silicon, a vital component in silicon wafer production, has been increasing, as the country’s reliance on China for the ingredient rose from 68.8% to 75.4% in 2022, the report states.

Meanwhile, South Korea’s reliance on rare earths, which are used in semiconductor abrasives, is also said to be on the rise, the report notes. The reliance on tungsten, crucial for semiconductor metal wiring, experienced a slight increase as well.

It is worth noting that since August of last year, the Chinese government has imposed export restrictions on critical minerals, including germanium and gallium, as a counteract to U.S. export sanctions. According to the U.S. Geological Survey, China produces 98% of the world’s gallium and 60% of germanium.

Even before the sanction, there is a significant rise in South Korea’s dependence on China for these critical minerals. Business Korea notes that the country’s dependence on germanium, which is frequently used in next-gen compound semiconductors, surged by 17.4 percentage points to 74.3% in 2022.

In addition, reliance on gallium and indium increased by 20.5 percentage points to 46.7%, according to the report.

Under the scenario of China’s export restrictions on key minerals, which were implemented in August and December of last year, the local production by major Chinese companies has not significantly declined, the report notes.

For instance, Samsung’ NAND flash facility in Xi’an, China, has increased its share for the company’s total NAND capacity during the past few years, from 29% in 2021 to 37% in 2023, with expectations to reach 40% this year, according to the report.

Read more

• [News] China’s Gallium and Germanium Export Restrictions Risk Chip Production Shortages
• [News] Chip War Escalates: China to Enforce State Ownership of All Rare Earth Materials in October

(Photo credit: Samsung)

Global Unichip Corp. (GUC), a leading provider of advanced ASIC solutions, announced that its 3nm HBM3E Controller and PHY IP have been adopted by a major cloud service provider and several high-performance computing (HPC) companies. The cutting-edge ASIC is expected to tape out this year, featuring the latest 9.2Gbps HBM3E memory technology.

In the same announcement, GUC highlighted its active collaboration with HBM suppliers like Micron, stating it is developing HBM4 IP for next-generation AI ASICs.

GUC noted that its joint efforts with Micron have demonstrated the ability of GUC’s HBM3E IP to achieve 9.2Gbps with Micron’s HBM3E on both CoWoS-S and CoWoS-R technologies. Test chip results from GUC show successful PI and SI outcomes, with excellent eye margins across temperature and voltage variations at these speeds.

Moreover, when GUC’s HBM3E IP is integrated with Micron’s HBM3E timing parameters, it improves effective bus utilization, further boosting overall system performance.

“We are thrilled to see our HBM3E Controller and PHY IP being integrated in CSP and HPC ASICs.” said Aditya Raina, CMO of GUC. “This adoption underscores the robustness and advantages of our HBM3E solution, which is silicon-proven and validated across multiple advanced technologies and major vendors. We look forward to continuing our support for various applications, including AI, high-performance computing, networking, and automotive.”

“Memory is an integral part of AI servers and foundational to the performance and advancement of data center systems,” said Girish Cherussery, senior director of Micron’s AI Solutions Group. “Micron’s best-in-class memory speeds and energy efficiency greatly benefit the increasing demands of Generative AI workloads, such as large language models like ChatGPT, sustaining the pace of AI growth.”

(Photo credit: GUC)

Recently, several 6-inch production lines have made significant advancements, focusing on third-generation semiconductor materials like silicon carbide (SiC) and gallium oxide (Ga2O3).

NEXIC Successfully Completes First Wafer Batch in Its Fab

On September 21, NEXIC announced that it had successfully completed the first wafer batch in its fab. NEXIC focuses on technological innovation and product development in SiC power devices and power modules, part of the third-generation semiconductors. The fab which located in Jiangyin, Jiangsu Province, China, began construction in August 2023, with equipment installation scheduled for August 2024.

Reports indicate that NEXIC’s 6-inch power semiconductor manufacturing project has a total investment of RMB 2 billion. The products can be widely used in electric vehicles, photovoltaic power generation, rail transit, and 5G communication. Once fully operational, the fab is expected to have an annual production capacity of 1 million wafers.

In June of this year, industry news revealed that NEXIC’s third-generation semiconductor power module R&D and production base project had signed an agreement to settle in Xidong New City, Wuxi, China. This project with a total investment of over RMB 1 billion, focuses on building an automotive-grade third-generation semiconductor power module packaging line, covering applications such as main drive systems, ultra-fast charging piles, photovoltaics, and industrial uses. The project is expected to begin production in 2025, with an annual output of approximately 1.29 million units and an estimated annual output value exceeding RMB 1.5 billion.

China’s First 6-Inch Gallium Oxide Monocrystalline and Epitaxial Wafer Growth Line Breaks Ground

On September 10, Fujia Gallium commenced construction of a 6-inch gallium oxide monocrystalline and epitaxial wafer growth line in Fuyang, Hangzhou.

Founded in 2019, Fujia Gallium is committed to the commercialization of ultra-wide bandgap semiconductor gallium oxide materials, focusing on the growth of gallium oxide monocrystals and the development, production, and sale of gallium oxide substrates and epitaxial wafers. Its products are mainly used in power devices, microwave RF, and optoelectronic detection.

It is reported that Fujia Gallium is currently the only company in China capable of both 6-inch monocrystal growth and epitaxy. This project marks the construction of China’s first 6-inch gallium oxide monocrystalline and epitaxial wafer growth line.

RIR’s 6-Inch Silicon Carbide Device Factory Completed with an Investment of INR 5.1 billion

On September 4, RIR Power Electronics Limited announced the completion of its silicon carbide semiconductor manufacturing plant in Odisha, India, with a total investment of INR 5.1 billion.

RIR is a subsidiary of the U.S.-based Silicon Power Group in India, specializing in the production of power electronic components. RIR’s product portfolio includes low to high-power devices and IGBT modules, serving industries such as energy, transportation, renewable energy, and defense.

In July 2023, Silicon Power Group announced the establishment of the SiC factory in Odisha, India, dedicated to producing 6-inch SiC wafers. The investment was made through its Indian subsidiary, RIR. In October 2023, RIR received approval from the Odisha state government to invest INR 5.108 billion in the project, which is expected to be fully operational by 2025.

In addition to RIR, Chennai-based SiCSem Private Limited announced in June its plans to establish a silicon carbide (SiC) manufacturing, assembly, testing, and packaging (ATMP) plant in Odisha, India.

On June 15, SiCSem signed a cooperation agreement with the Indian Institute of Technology Bhubaneswar (IIT-BBS) to collaborate on research in the compound semiconductor field. Their first joint project aims to localize SiC crystal growth at IIT-BBS, focusing on the mass production of 6-inch and 8-inch SiC wafers, with an estimated investment of INR 450 million (approximately RMB 38 million).

(Photo credit: Fujia Gallium)